Main reasons to start your Upton lease extension
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Main reasons to commence your Upton lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/upton">Upton</a> lease depreciates with the years remaining on the lease.
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<p> Unfortunately that a Upton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Upton property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining dips under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Upton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
<h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold premises in Upton with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it. <h4>Lenders may decide not to loan monies with a short lease</h4> Mortgage companies are making their criteria more stringent and many now require flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. As a number of flats in Upton were built in the fifties, sixties and seventies this means many now require lease extensions if they if they are to be mortgageable.
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<td>Coventry Building Society</td>
<td> A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Yorkshire Building Society</td>
<td> 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
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<h4> Get in touch with one of our Upton lease extension solicitors or enfranchisement solicitors
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<p> Retaining our service gives you better control over the value of your Upton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell.
The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Upton Lease Extension Example Cases:
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<h5> Teddy, Upton, Merseyside,</h5>
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Teddy owned a studio apartment in Upton being marketed with a lease of a little over fifty eight years remaining. Teddy on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Teddy to invoke his statutory right. Teddy procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
<h5>Upton case:</h5>
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Last month we were approach by Mr and Mrs. W Carter , who
bought a ground floor flat in Upton in August 2011. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Upton with 100 year plus lease were worth £191,000. The average ground rent payable was £65 collected quarterly. The lease expired in 2084. Taking into account 58 years remaining we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus fees.
<div> <h5>Decision in Bexley</h5>
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An example of a Lease Extension matter before the tribunal for a Upton premises is
Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439.
This case affected 13 flats. The remaining number of years on the lease was 76 years.
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